Product overview
This study assesses a pencil manufacturing plant with an installed capacity of 200,000 gross (28.8 million pencils) a year, supplying Ethiopia’s school population of about 27 million learners. Customs data show 189 tonnes of pencils and crayons imported in 2025, 94% from China, at a landed cost of about Birr 537 per kg; base-case demand is estimated at about 121 million pencils in 2026, and the plant would supply about 24% of it. With a total investment of Birr 213.7 million at an exchange rate of Birr 159.70 per US dollar, the project earns an after-tax IRR of 23.4%, an NPV of Birr 57.0 million at 17% and a payback of about four years at the base-case prices, with a full analysis of break-even and import-parity prices.
Main chapters
1. Executive summary
2. Product description and application
3. Market study: education sector, imports 2002–2011 and 2021–2025, supplier countries, import prices and tax wedge, apparent consumption, demand scenarios to 2035, import-parity pricing, distribution, SWOT
4. Plant capacity and production programme
5. Materials and inputs: imported slats, leads and finishing materials, packaging, electricity and water
6. Technology and engineering: production process, machinery list, land lease, building and environmental impact
7. Human resources and training: 102-person staffing and salaries
8. Financial analysis: assumptions, investment, financing, production cost, 10-year income statement and cash flow, IRR, NPV, payback, break-even and sensitivity
9. Economic and social benefits; references
Key analytical components
▪ 24 numbered tables and 8 figures, including a process flow and seven charts
▪ Customs import data for HS 9609.10, 2021–2025: tonnes, CIF values in birr and US dollars, prices per kg, duties and taxes, supplier countries
▪ Apparent consumption and conservative, base and optimistic demand scenarios based on 2022/23 Ministry of Education enrolment data, projected to 2035
▪ Current electricity tariff, land lease benchmark, salaries, income tax and investment incentive rules (2025–2026)
▪ 10-year income statement and cash flow, break-even at 53% of sales, break-even and import-parity price analysis, and sensitivity to prices, input costs, machinery, construction, ramp-up and shift pattern
Practical applications
▪ A template for pencil, stationery or school-supply manufacturing projects and bank applications in Ethiopia
▪ A reference for pencil production technology, machinery and input requirements
▪ Market data on Ethiopia’s school population and pencil supply
File formats
Editable Microsoft Word (.docx) and print-ready PDF, A4, 29 pages; title in English and Amharic on the cover.
Price basis
▪ All costs and prices are at 2026 levels, at Birr 159.70 per US dollar.
D. What’s included
File Description
Editable report (.docx) Full study: 9 chapters and references, with automatic contents and lists of tables and figures
Report (.pdf) Print-ready PDF of the same content, 29 pages
Front matter Contents, lists of tables and figures, abbreviations
E. Target customers
▪ Investors planning pencil, stationery or school-supply manufacturing
▪ Consultants preparing manufacturing feasibility studies and bank applications
▪ Bank and development bank credit analysts
▪ Investment promotion offices and industrial park developers
▪ Students and lecturers in project appraisal and industrial engineering

colour pencils

Pencil Manufacturing Plant Feasibility Study – Ethiopia የእርሳስ ማምረቻ ፋብሪካ የአዋጭነት ጥናት